Automotive Over-The-Air (OTA) Updates Market Research Report: By Type (Software, Firmware), Propulsion (Internal Combustion Engine, Electric), Vehicle Type (Passenger Vehicle, Commercial Vehicle), Application (Telematics Control Unit, Infotainment System, Electronics Control Unit) – Global Industry Revenue Forecast Report, 2030

Market Overview

The global automotive over-the-air (OTA) updates market was valued at $2,422.6 million in 2020, which is expected to grow at a CAGR of 19.5% during the forecast period 2021–2030 due to the increasing number of connected cars and electric vehicles (EVs). With the rapid growth in the number of connected cars across the globe and the rising software dependence of such vehicles, the need for OTA updates is surging significantly. As a result, original equipment manufacturers (OEMs) are investing in OTA upgradation technologies to make it easier for vehicle owners to update their vehicles’ software.

The emergence of the COVID-19 pandemic has significantly slowed down the automotive industry growth rate for the time being. With nationwide lockdowns being implemented in most of the COVID-19-affected countries, the automotive industry witnessed a mammoth decline in the vehicle demand, along with operational hindrances. In addition, the effects of the pandemic such as a decline in the production and sales of advanced connected vehicles negatively impacted the market for automotive OTA updates.

With Advancements in Connected Technologies, Software Category To Account for Major Share

The software category held the larger revenue share in the automotive over-the-air updates market in 2020, on the basis of type. The OTA software update technology is a more-efficient than the conventional way for OEMs to upgrade the software and fix bugs. The key factor contributing to the market dominance of this category is easy connectivity between embedded systems and connected devices, which provides critical information, such as the location of fuel and charging stations and battery and charging status, in addition to facilitating the remote diagnosis of all types of connected vehicles.

Electric To Be Faster-Growing Category due to Increasing Government Support and Grants

During the forecast period, electric category in the automotive OTA updates market is expected to witness the faster growth, on the basis of propulsion. This would mainly be due to the increasing government support, in the form of incentives and grants, for the adoption of EVs, and stringent emission regulations. Moreover, the majorly of EVs are equipped with advanced connected systems for efficient operations and high levels of safety and security. Thus, these vehicles require OTA updates regularly, for smooth functioning.

North America Accounted for Major Share in 2020 due to Higher Adoption of Connected Vehicles

Globally, North America held the largest share in the automotive over-the-air updates market in 2020. This leading position is majorly attributed to the increasing adoption of connected vehicles in the region. The demand for vehicle networking, navigation, communication, and entertainment features has increased immensely with the growing compatibility of mobile devices with these vehicles. Additionally, OEMs and technology providers in the region are consistently investing substantial sums in the creation of robust technologies, which are attracting vehicle customers. For instance, Tesla Inc. provides a module for troubleshooting and regularly receiving OTA software updates that add new features and enhance the existing ones over Wi-Fi.

Incorporation of Smart, Connected Technologies Is Key Market Trend

The increasing adoption of the internet of things (IoT) technology is encouraging major automobile manufacturers to shift their focus to connected vehicles and either launch new variants or integrate advanced connectivity features in the existing models. This is a response to the increasing demand for state-of-the-art infotainment, telematics, and navigation systems by people. These systems rely on the software installed on the vehicle’s embedded hardware, which requires regular updates for smooth functioning. Thus, the rising incorporation of smart, connected technologies is a major trend being observed in the automotive over-the-air updates market.

With Simplification of Automotive Software Upgradation Process, Market To Witness Significant Growth

The increasing rate of automotive digitalization implies that vehicles need regular software updates, including cybersecurity updates, to keep up with the latest advancements in connectivity technologies. Instead of repeatedly recalling the sold vehicles to a garage, it is much faster, as well as economical, to install these updates wirelessly or OTA. Moreover, OTA updates facilitate an IoT-enabled environment, by enhancing the functionality, making it easier to introduce new features, and protecting the devices against hacking, data breaches, and other types of cyberattacks. Such added benefits of OTA updates act as a major driver for the market.

Introduction of New Vehicle Safety Norms due to Concerns for Vehicle Safety Driving Market

The strict norms related to vehicle and passenger safety are expected to drive the automotive OTA updates market around the world. Vehicle safety has always been a prime concern for automotive manufacturers around the world. With the introduction of newer safety regulations and vehicle monitoring standards, it has become imperative for the manufacturers to make their offerings adaptable to the prevailing vehicle standards. Moreover, with the increasing sophistication in the automotive technology and the improving degree of programmability, automakers are rapidly focusing on upgrading their vehicles, to ensure compliance with the revised norms and regulations.

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Market Players Introducing New Services and Software to Gain Competitive Edge

In recent years, major players in the market for automotive OTA updates have launched new software and updated services to gain competitive advantage over their competitors:

• In January 2020, Qualcomm Incorporated introduced the car-to-cloud service for OTA updates, with on-demand services & features. It is an integrated, secure connected car service suite for Qualcomm Snapdragon Automotive Cockpit platforms and Qualcomm Snapdragon Automotive 4G and 5G platforms.
• In January 2020, Aptiv PLC launched a sustainable vehicle architecture at the Consumer Electronics Show 2020. The new architecture enables automakers to improve safety, increase vehicle efficiency, and deliver connected solutions and OTA software updates.

Key Players in Global Automotive OTA Updates Industry Include:

Market Size Breakdown by Segments

The automotive over-the-air updates market report offers comprehensive market segmentation analysis along with market estimation for the period 2014-2030.

Based on Type

• Software
• Firmware

Based on Propulsion

• Internal Combustion Engine (ICE)
• Electric

Based on Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

Based on Application

• Telematics Control Unit (TCU)
• Infotainment System
• Electronics Control Unit (ECU)

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  •  Italy
  • Spain
• Asia-Pacific (APAC)
  • China
  •  Japan
  • India
  •  South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
  • Argentina,
• Middle East and Africa (MEA)
  • Saudi Arabia
  •  U.A.E.
  •  South Africa